France planning cost-cutting after Friday's credit downgrade

PARIS (AP)

France's prime minister said Saturday his country will push ahead with cost-cutting measures after its top-tier debt rating was downgraded, a blow with repercussions across financially beleaguered Europe.

Other European countries from Austria to Cyprus assailed ratings agency Standard & Poor's after a raft of downgrades Friday night that renewed questions about the power such agencies wield.

The move may make it more expensive for struggling countries to borrow money, reduce debts and avoid a new recession.